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Potential Fiscal Cliff Putting Farmers at Risk

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    Gov. Dave Heineman, (R-Neb.), on the potential impact of the fiscal cliff on states as well as on farming.

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Just a -- I know but you know what it is a huge topic of conversation not just in Washington -- But all around the nation but -- -- this twist on it.

The farming cliff states in America's heartland -- lawmakers to include a farming subsidy in deal discussions.

How will this impact the state.

That has 93%.

Of its land area -- used by farms and ranches.

That's Nebraska we conclude our governors on the -- series with Nebraska governor Dave Heineman.

In a Fox Business exclusive what are headache for you we've been talking to governor -- -- -- and and and everybody has their own story they really do governor Heineman but yours is particularly worrisome explain to our viewers what would happen.

To Nebraska and to the farmers and subsidies and all else that ties into this if we go over that fiscal cliff.

Well first of all Liz let me say good afternoon it's always great to be with you.

I'm concerned not just about the farming cliff if you want to put it that way but the overall fiscal cliff.

We need America to come together at the federal level to develop policies that spur economic growth.

Create more jobs.

In America like we've done here in Nebraska as you know.

We have -- second -- unemployment rate in America three point 8%.

Secondly got to control your spending but invest in your priorities education and jobs.

And I want you know that I talked our farmers and ranchers they're prepared to take their fair share of budget reductions if -- will put America and better economic shape.

I know I know but do you think it's going to happen do you think they will be able to come to terms.

It doesn't look hopeful at the moment governor.

It doesn't end and the president needs a lead just like governor's lead in the states and what I would suggest -- He needs him by speaker Boehner down for a long lunch or -- long dinner and they ought to stay together as long as it takes to develop a framework for a real positive solution to move forward regarding the fiscal challenges we face the two of them need to sit down get it worked out and put America first.

But you know what as they do that or not -- governors and what we've learned from Delaware and Rhode Island and Pennsylvania Utah all of you've been so kind to come on the show.

Is that you wait around to have this.

Old navy will take this -- is this very delicate ballet dance that they seem to be engaging in that the US governors have to balance your budgets you have to figure it out and view it as a Nebraska the second lowest unemployment rated about three point 8% impressive.

But aren't you worried that you may lose some traction there if we go over that fiscal cliff but what are you doing in advance to sort of protect yourself from the state.

Well Liz I am concerned about that in the long term.

My biggest -- with the federal never right now simply make a decision.

We do that every day in the states we have to balance our budgets I wish they had to say requirement of federal level weeks however as we prepare yeah as we prepare our budget we're getting ready.

We've got a strong cash reserve more than 400 million dollars we don't spend money we don't have out here so I'm prepared to deal of whatever happens at the federal level.

I just like it would like it to be positive -- spur economic growth.

Do you dismissed and our unemployment rate.

Think well what happened in America if America had our three point 8% unemployment rate we get this country moving again more people would be a -- more people hey -- -- -- often aren't you and I have this conversation for quite some time one of the things he did right was that you guys never got involved in sub prime mortgages you have rules against that.

-- so the question becomes what else have you done right to get it at that level which is second only to North Dakota.

What we've done lives a couple things are one -- -- budget number two we passed the largest actually.

Package in the history of the state to spur economic growth.

I've been on several foreign trade missions I was just in China -- two months ago as we continue to compete in the global economy.

So we're prepared to do that which you've got to create a tax competitive.

Job competitive business friendly environment because the opportunities are with the private sector and we understand that here in Nebraska.

We have asked all of our governors this week the same question and that is have you prepared not one but two budgets.

One taking into account whether we go over the cliff and another if we don't go over the cliff.

That -- I really have a look at it that way -- preparing a budget for next two years cycle.

Based on what we think's gonna happen in Nebraska and then we are prepared to adjust depending on what -- at the federal level.

But I do want to remain cautiously optimistic that they will find a deal.

Put America first.

I'm glad that you do remain cautiously optimistic we are too but let me just quickly ask you about keystone.

Nebraska is a very important stay here because it would go of course through Nebraska that could be dangerous for some of your farmland in you yourself have held it up at certain points worried about that.

There is apparently as I understand it.

An imminent meeting in December and we're hearing from some people that a deal could be imminent that the keystone -- very well be approved what are you hearing.

Lives are two key things in our legislation now.

Number one the preferred route has to go around the environmentally.

Sensitive sand hills area it does that.

Secondly on December 4 we are having any hearing in Albion Nebraska -- listen to all the concerns of Nebraska ends.

That will finish of the environmental impact statement.

If they pass all the environmental laws of this state in this country that information will be forwarded me by the end of the year.

And then I will forward all that information with a recommendation to the president sometime in January.

-- again a very things positive there we're gonna say approve it if there's something wrong we'll go back and take a second look at it.

Governor Dave Heineman so nice to -- on the program thank you so much.

Thank you -- a former army ranger you know almost all of our governors this week have served in the military very impressive wonderful to have all of them.

For our governors on the -- series --